Practice_Midterm 2

Practice_Midterm 2 - University of Toledo BUAD 2050 Fall...

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University of Toledo BUAD 2050 – Fall 2011 Practice Exam – Midterm Exam 2 1 1. Calhoun Company makes two different products, Product X and Product Y in departments named after the products. For example, Product X is made in Department X. The rent paid on the manufacturing facility would most likely be allocated on the basis of: A) direct labor hours. B) machine hours. C) square footage. D) units sold. 2. JP Manufacturing Co. produces two products. The products' identified costs are as follows: The company's overhead costs of $68,000 are allocated based on direct material cost. Assume 4,000 units of product A are produced and 5,000 units of Product B are produced. What is the total amount of production costs that will be accumulated for Product A? A) $28,000 B) $34,000 C) $36,000 D) $64,000 3. Which of the following is incorrect regarding a job-order cost system? A) A job-order costing is used when a company produces unique, one-of-a-kind inventory items. B) A job-order costing would be appropriate for the medical profession. C) A job-order costing would be appropriate for services provided by a law firm. D) A job-order costing is used when homogenous items are produced in a continuous flow production process. 4. Joint products A and B emerge from common processing that costs $2000 and yields 300 units of Product A and 100 units of Product B. Product A can be sold as-is for $5 per unit or processed further and sold later for $12 per unit. Product B can be sold as-is for $25 per unit or processed further and sold later for $30 per unit. The additional per unit processing costs for Product A and B total $5 and $8, respectively. How much joint costs will be assigned to Product B if joint costs are allocated on the basis of units produced? A) $ 360 B) $ 500 C) $750 D) $1,000 Product A Product B Direct Materials $18,000 $16,000 Direct Labor $10,000 $28,000
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University of Toledo BUAD 2050 – Fall 2011 Practice Exam – Midterm Exam 2 2 5. Joint products A and B emerge from common processing that costs $2000 and yields 300 units of Product A and 100 units of Product B. Product A can be sold as-is for $5 per unit or processed further and sold later for $12 per unit. Product B can be sold as-is for $25 per unit or processed further and sold later for $30 per unit. The additional per unit processing costs for Product A and B total $5 and $8, respectively. How much joint costs will be assigned to Product A if joint costs are allocated on the basis of relative sales? A) $ 1,080 B) $ 500 C) $750 D) $1,250 6. A job order cost system would most likely be used A) By a fast food restaurant. B) In personal computer manufacturing. C) For organ transplant surgery. D) All of the above.
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This note was uploaded on 02/22/2012 for the course BUAD 2050 taught by Professor Nicholasw.schroeder during the Spring '09 term at Toledo.

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Practice_Midterm 2 - University of Toledo BUAD 2050 Fall...

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